Business Plan
By Targo Consulting
February 2017
Table of Contents
Executive Summary .............................................................................. 1
The Product ......................................................................................... 5
The Problem ................................................................................................. 5
Claresis ......................................................................................................... 8
Market Analysis ................................................................................. 10
The Global IT Market .................................................................................. 10
The ITOA Market ........................................................................................ 12
Competitors Analysis ......................................................................... 15
Competitive Edge ............................................................................... 23
Business Model .................................................................................. 24
Go-To Market Strategy ....................................................................... 25
Marketing Plan ............................................................................................ 26
Timeline ............................................................................................. 27
Financial Plan ..................................................................................... 28
1
EXECUTIVE SUMMARY
The Product
Claresis is a revolutionary IT Operations Analytics (ITOA). Using advanced
analysis and state-of-the-art technology, Claresis allows organizations to
simplify and automate IT processes, reduce the number of IT failures as well
as the time it takes to handle them, and ultimately – save a tremendous
amount of money.
The Problem
Time is on the essence when handling IT failures, which largely impact
businesses negatively.
IT failures cost Fortune 1000 companies from $1.25 billion to $2.5
billion per organization every year
45% of businesses are impacted in the first 15 minutes of an IT failure
60% of businesses reported it takes 15 minutes or more to just identify
who the right individual is to respond to a particular issue
35% of businesses reported time-to-repair of up to 12 hours
The Market
The global IT market is estimated at $3.3 trillion
The global IT operations market is estimated at $140 billion
The emerging market of ITOA is estimated at $4 billion, with a CAGR
of 35.2%, and is expected to grow to $9.8 billion by 2020
78% Of organization are willing to implement ITOA solutions
2
Competition
Claresis' competitors consist of small and large companies which provide
separate solutions for monitoring and modeling IT environments, but are yet
to integrate the two into a single platform.
Business Model, Target Market & Distribution Channels
Claresis' target market is organizations that are in need for a solution to manage their IT environment
Claresis' revenue model will be based on charging an annual license fee
To distribute Claresis, the company will make use of two distribution channels: direct sales (in-house salespeople) and indirect sales (IT integrators/business partners).
Go-To Market Strategy
The company will initiate a pilot in Israel. Upon successful pilot period, the
company will go global, focusing on the US market.
3
Marketing Mix
Exhibitions/Expos Public Relations
LinkedIn Campaign Online Advertisement
Timeline
- 2017 – Tech POC achieved, partnerships with integrators have been made
Q1-Q2 – Pilot in Israel, fund raising, development
Q3 – First sales in Israel
Q4 – Additional fund raising
Year 2 – First sales in the US
Projections
$0 $1,400,000
$9,800,000
$21,000,000
-$1,395,300 -$3,069,344
$2,533,854
$9,127,264
Year 1 Year 2 Year 3 Year 4
Yearly Cash Flow
Income Free Cash Flow (Before Tax)
4
Funds Needed
The company is looking to raise $1,880,300 which will be used as follows:
$101,000
$154,300
$1,455,000
$120,000 $50,000
Capex
Opex
Personnel
Marketing
Unexpected
5
THE PRODUCT
Claresis is a revolutionary IT Operations Analytics (ITOA), allowing
organizations to easily pinpoint the root cause of IT issues in real-time.
The Problem
IT Failures in Businesses
A global survey of IT professionals conducted by Dimensional
Research raises some interesting insights regarding IT
failures in businesses.1
Downtime
Nearly half (45%) of all participants surveyed indicated that their business was
impacted if IT was down just fifteen minutes or less. But a full 17% indicated
that their business was negatively affected the instant IT had any service
interruptions.
1 http://info.xmatters.com/rs/alarmpoint/images/xMatters-2015-Survey-Report.pdf
Time is crucial when dealing with IT failures
6
Time-to-Repair
An IDC survey indicates that 35% of respondents reported time-to-repair of up
to 12 hours. Double-digit percentages – 17% for infrastructure failures and
13% for application failures – measured their time-to-repair in days rather than
hours.2
Finding the Right Person
When participants were asked how long it takes to just identify who the right
individual is to respond to a particular issue, 60% indicated fifteen minutes or
more. That means for most companies their business is being negatively
affected before IT has even identified who should respond to a particular
problem.
Further, 47% of IT professionals surveyed shared that it actually takes as long
as, or longer, to identify the right individual as it does to resolve the actual
problem. So, nearly half the time it takes to mitigate any IT issue is just finding
the right person, and meanwhile the business is being impacted.
2 https://kapost-files-prod.s3.amazonaws.com/published/54ef73ef2592468e25000438/idc-
devops-and-the-cost-of-downtime-fortune-1000-best-practice-metrics-quantified.pdf
7
IT Challenges in Organizations
A recent research by media and research firm DEJ
discovered several themes around analytics in IT
performance in over 1,000 global organizations
surveyed.3 The research reveals that the goal of 71% of organizations is to
make IT more strategic in 2017. It further shows that 78% of these
organizations see IT Operations Analytics (ITOA) as a technology that
can help them achieve this goal.
3 http://dej.io/2016/09/analytics-in-it-performance-key-capability-or-a-conundrum/
78% Of organization
are willing to implement ITOA
solutions
8
Correlations – 49% of organizations reported a lack of correlation
between system elements as one of their key challenges.
Automation – 55% of organizations are looking to improve accuracy,
timeliness and relevance of their alerting and notification capabilities.
Advanced and predictive analytics
Machine learning – 45% increase in the number of organizations
looking to deploy machine learning capabilities for IT
performance since 2014. Also, the graph above lists machine learning
capabilities as one of the top investment areas in IT performance for
user organizations in the next 12 months.
IT Downtime Effects on Businesses
According to an IDC report:4
Unplanned application downtime costs the Fortune
1000 companies from $1.25 billion to $2.5 billion every year
On average, infrastructure failure costs large enterprises $100,000 per
hour
Critical application failures exact toll ranging from $500,000 to $1
million per hour
Claresis
Claresis is the fruit of 20 years of experience in development and assimilation
of ITOA (Information Technology Operations Analytics) systems,
encompassing automatic processes that take place on a day-to-day basis in
organizations. Claresis' purpose is to shorten and streamline processes and
reduce the number of steps required to perform them, while providing an
easy, simple approach to operating them from a single point.
4 https://kapost-files-prod.s3.amazonaws.com/published/54ef73ef2592468e25000438/idc-
devops-and-the-cost-of-downtime-fortune-1000-best-practice-metrics-quantified.pdf
IT downtime largely affects
businesses
9
Claresis' 3 Main Functions
Root Cause Analysis. Claresis ingests data and events from all of the
organization's existing IT systems in real-time and can identify the source of
the issue and all the relevant components affected
Predictive Analysis. Using big data, machine learning, statistical analysis,
data mining and more, Claresis is able to identify the likelihood of future IT
failures and issues, based on historical data
Behavioral Analysis. Using advanced behavioral analytics, Claresis is able
to learn the unique behavior of the system over time, detect anomalies and
set dynamic thresholds
Value for Organizations
Much faster problem fixing
and reduced downtime
Allows making informed
decisions about the best way
to configure the environment
and collaborate as a team
Reduces unnecessary
spending and income lose
Shorter assimilation &
mapping time
Simplification of the complex
IT environment
Automation of processes
10
MARKET ANALYSIS
The following market analysis will examine several aspects and facts
regarding the global IT & ITOA market, as well as provide insights and future
trends.
The Global IT Market
The Global IT Market Size (In Terms of Spending)
The total IT spending in 2016 was $3.3 trillion and is
forecasted to reach $3.8 trillion by 2020, representing a CAGR of 3.3% for the
2016-2020 period.5,6,7
Global Spending on IT Operations
Below is a graphic depicting the projected increase of
IT operations spending globally from 2014 to 2020. The
report from IDC projects an increase from $140.8
billion in 2015 to $157.8 billion by 2020 globally.
5 http://www.accelerance.com/research/global-it-market-size-facts-and-figures#Summary
6 http://www.gartner.com/newsroom/id/3482917
7 https://www.idc.com/getdoc.jsp?containerId=prUS41699316
$3.3 Trillion The global IT market
$140 Billion The global IT
operations market
11
Share Breakdown of IT Spending by Region
As can be seen in the chart below, geographically, the top 3 regions with over 90%
share of IT spending are as of 2015 North America (39.33%), Western Europe
(31.74%) and Asia Pacific (19.14%).
Region Share
North America 39.33 %
Western Europe 31.74 %
Asia Pacific 19.14 %
Latin America 4.45 %
Middle East & Africa 2.84 %
Central & Eastern Europe 2.5 %
Share Breakdown of IT Spending by Industry
As can be seen in the chart below, the top 5 industries with the highest total IT
spending in 2014 were banking and securities ($498b), manufacturing and
natural resources ($498b), communication (media services) ($444b), the
government sector ($447b) and insurance ($187b).
12
The ITOA Market
The ITOA market is thriving, and in the next five years it
will present huge potential opportunity for ITOA vendors,
according to market research by MarketsAndMarkets. By
2020, it is expected to grow to $9.79 billion (from the
$2.17 billion estimated for 2015). This means a 35.2% CAGR for the 5 years
analyzed.8
8 http://www.marketsandmarkets.com/Market-Reports/it-operations-analytics-market-
145809472.html
$4 Billion The global
ITOA market 35.2% CAGR
13
This proves without a shadow of a doubt that ITOA has reached the
maturity point. It is no longer a small market waiting “to make it big”. These
numbers prove that ITOA is here to stay, and that it will soon help reach
business goals all over the world.
To put this growth into perspective, an IDC report helps show that the big data
technology and services market will grow to $41.5 billion by 2018 at a 26.4%
CAGR.9 This growth rate is six times the one of the overall information
technology market. It goes without saying that big data and ITOA are
interdependent: the latter gives the first one meaning and business relevance.
It is, thus, absolutely normal for them both to grow at a very similar pace.
ITOA Market Trends
According to the MarketAndMarkets research, during the 2015-2020 period,
two key components of ITOA are forecasted to grow at the highest
CAGR: networks & security management and real-time log analytics. In
fact, the latter is expected to have the largest market share – proving once
again that quick response, actionable insights and time-to-market are deemed
as crucial business values.
Furthermore, few main catalysts can be assigned to the ITOA market growth:
Mass adoption of the cloud as an indispensable business solution
Companies are starting to embrace new technologies as a means
to gain more insight into their customers’ needs and demands
Organizations are under pressure to modernize their IT
infrastructure in order to operate more efficiently. They need more
resources to innovate in order to keep up with the pace of the
business. Unfortunately, most of their budget is lost trying to keep the
lights on
9 http://www.idc.com/promo/thirdplatform/fourpillars/bigdataanalytics
14
Since every IT service is based on many parameters from different
layers, platforms, and infrastructure, a small change in one of the
parameters amongst the millions of others can create a significant
impact. When this happens, finding the root cause can take hours or
days, particularly given the pace and diversity of changes
15
COMPETITORS ANALYSIS
The following analysis consists of the most relevant competitors that directly
or indirectly cater the same needs Claresis is intended to answer.
HP Enterprise ITOA
HPE ITOA is an automated analytics driven solution that uses machine
intelligence to reveal hidden insights in IT and business data. HPE ITOA
enables businesses to find root cause of failures and proactively improve IT
operations in a single-pane view.
Key features of HPE ITOA:
Advanced machine data – complete view of the IT environment by leveraging all of the data, both structured and unstructured including: events, logs, topology, and any metric
Built-in intelligence which allows for collection, indexing and search of millions of data fields in real-time
Root cause analytics – identification of trends and pinpointing IT issues in minutes with Time Machine data playback and clear, intuitive dashboards
16
Log and event analytics – automated analysis across known and unknown data filters out noise, determines relevant clusters, and analyzes text to identify abnormal behavior
Predictive analytics – machine learning algorithms automatically calculate baselines taking into account data patterns and seasonality to predict future performance
Anomaly alerting which helps prevent IT issues from impacting end-users with real-time, intuitive alerts that notifies when performance exceeds baseline
According to Software Magazine, HP is the 3rd largest software company in
the world in total software revenue, behind Microsoft and IBM as the first and
second largest, respectively. HP claims that the HP Software segment is
effectively the globe's sixth-largest software vendor with 5,000 partners and
50,000 customers, and works with 94 Fortune 100 companies.10
10
http://www.channelweb.co.uk/crn-uk/news/2249524/hp-to-turn-software-business-towards-channel
17
IBM ITOA
IBM ITOA solutions analyze the terabytes of big data from the organization's
IT operations. These solutions turn your data into understandable, relevant
information and insights that the organization can act on immediately.
IBM ITOA allows organizations to:
Avoid service outages by detecting anomalous behavior within the
environment, sending proactive notifications of emerging operational
issues before they become service interruptions
Reduce operational costs by letting the continuous learning
capabilities of IBM ITOA learn the environment, set and maintain
performance thresholds across applications and resources
Improve time-to-repair – reduce problem query cycle times by 98%
Improve operational efficiency
Nicknamed Big Blue, IBM is one of 30 companies included in the Dow Jones
Industrial Average and one of the world's largest employers, with (as of 2016)
nearly 380,000 employees.
18
Moogsoft
Moogsoft is a leading provider of ITOA for large and complex IT
environments. The company delivers machine learning-based incident
management solutions to help organizations detect, triage and resolve
incidents inside their production environments and improve service quality.
Moogsoft's flagship product, 'Incident.MOOG', is a next-generation manager
of managers (MoM), providing an incident early warning and collaborative
remediation platform for IT Ops and DevOps teams. Its machine learning
approach contextualizes alerts into single Situations, reducing the number of
actionable events that have to be handled, accelerating incident resolution,
increasing service quality and reducing costs.
19
Moogsoft allows organizations to:
Reduce time-to-detect & time-to-restore by 75%
Reduce event noise by 99%
Reduce number of incidents
Reduce revenue risk
Companies who use Moogsoft solutions include Cisco, Royal Bank of
Canada, Yahoo, GoDaddy and T-Mobile.
Moogsoft was founded in 2011 and is based in California, USA. The company
has over 100 employees.
20
Loom Systems
Loom Systems empowers IT teams by radically simplifying root cause
analysis. It automatically ingests and analyzes all types of logs and metrics,
detects anomalies and trends, and reports these along with the root cause.
The entire cycle is fully automatic, requiring no data pre-processing or manual
setting of parameters and thresholds. Incidents are accompanied by
recommended resolutions from a proprietary resolutions database, which also
includes internal resolutions filled in by the platform users.
Built for low-touch operational simplicity and usability, Loom Systems' solution
empowers IT, DevOps, System Admins, NOC teams and Security specialists
by transforming reactive users into proactive power-users.
Loom Systems allows organizations to:
Automatically detect and conduct root cause analysis
Fully automatic processing of structured and unstructured data
Reduce Alert Noise by more than 99%
Improve time-to-repair by more than 45%
Loom Systems was founded in 2015 and is based in California, USA. The
company was honored as Stevie® Award Winner in 2016 American Business
Awards and has been selected as a 2016 Red Herring Top 100 Asia Winner.
Among Loom Systems' customers are Taptica, Citrix, Amdocs and SM
Madanes.
21
Big Panda
BigPanda is a data science platform for centralizing and correlating all of the
organization's IT alerts and transform them into actionable insights. It allows
for automating IT event correlation, which helps IT, NOC and DevOps teams
detect & resolve critical issues (allegedly) 90% faster.
BigPanda's flagship product is a SaaS-based data science platform for IT
incident management that monitors, analyzes, and correlates machine alerts
to create high-level IT incidents. It integrates with existing IT infrastructure
monitoring tools, including traditional monitoring systems from HP and IBM
along with others like New Relic, AppDynamics, Splunk, Nagios, Zabbix,
Amazon CloudWatch, and more. The platform also integrates with several
deployment and configuration management tools like Chef, Ansible, Puppet,
and others.
The platform uses clustering algorithms to aggregate data across multiple
monitoring systems, normalize them into a single consistent data model, and
22
then compressing multiple alerts into consolidated incidents that are displayed
based on their relative importance. The software is designed to display only
the most important alerts and incidents to specific users based on their
preferences using AutoShare rules and outbound sharing channels including
Slack, HipChat, JIRA, ServiceNow, email, and SMS.
BigPanda was founded in 2012 and is based in California, USA and has an
office in Tel Aviv. The company is venture-backed by Sequoia Capital,
Mayfield, Battery Ventures and Pelion Venture Partners. Among BigPanda's
customers are Gap, Wix, Playtica News Corp and more.
23
COMPETITIVE EDGE
24
BUSINESS MODEL
Target Market
Claresis' target market is organizations that are in need for a solution to
manage their IT environment, with an emphasis on the following industries, in
North America and Western Europe:
Banking & finances
Communications
Manufacturing & natural resources
Revenue Model
Claresis will charge an annual license fee in accordance with the size of the
organization and the complexity of its IT systems.
Distribution Channels
The company will make use of two distribution channels to sell Claresis to
organizations:
1. Direct Sales. Using sales people, the company will directly contact
relevant personnel in organizations and offers them to use Claresis.
2. Business partners. The company will partner with IT integrators and
other relevant companies such as Ness who will push Claresis to their
clients.
25
GO-TO MARKET STRATEGY
Market Penetration Strategy
Pilot & POC in Israel
Claresis will initially focus on the Israeli Market in order to:
Launch in a relatively small (but solid) market and collect direct and
continuous feedback from organizations and end-users in order to
constantly improve Claresis and pivot as necessary
Generate a solid client portfolio which will prove Claresis' potential to
grow and succeed globally
The company has already made agreements upon initial pilot with two large
Israeli companies – Bank Leumi (letter of interest available) and Maccabi
Healthcare Services.
US Launch
Upon successful pilot period in Israel, the company will launch Claresis
globally, with focus on the US market.
In order to do so, the company will look for a 'middle man'/intermediary who
possess strong connections with major organizations in the US, possibly a
renowned lawyer/accountant. This person will help reach big US clients by
introducing Claresis to the relevant personnel in the organization.
Strategic Partnerships
The company has already partnered with big Israeli IT integrators Aman and
DoITWise, and is expecting to partner with more, bigger integrators in the
future.
26
Marketing Plan
The purpose of the following marketing plan is to brand Claresis as a must-
have system for every organization who deals with large, complex IT
environments.
Exhibitions/Expos
Attending IT exhibitions, such as TECHSPO11, is a great way to showcase
Claresis, provide a solid understanding of the landscape, deliver useful
insights into the competition, increase brand awareness, and most importantly
– attract potential clients & business partners.
Public Relations
The best way to generate awareness to a product is by creating significant
press coverage through a PR campaign. The company will use the services of
a professional PR and marketing company that is experienced in executing
wide scale advertising campaigns for B2B companies.
LinkedIn Campaign
The company will initiate a LinkedIn campaign in order to target key IT people
in organizations.
Online Advertisement
Claresis will initiate media buying with display networks such as the Google
Display Network or Facebook Ads.
11
http://techspo.co/
27
TIMELINE
28
FINANCIAL PLAN
The following financial plan represents the future prediction of the company's operations. The assumptions and projections are
supported by the figures and strategies described in the business plan.
Pilot in Israel
Development Sales in Israel
U.S Launch
CAPEX Q1 Q2 Q3 Q4 Year 1 Year 2 Year 3 Year 4
Software/hardware licenses 9,000 4,000 8,000 5,000 26,000 15,000 16,000 18,000
Office fixtures 15,000
15,000
15,000 Website 5,000
5,000
Branding
3,000
3,000 Computers 18,000 8,000 16,000 10,000 52,000 30,000 32,000 36,000
Total $47,000 $15,000 $24,000 $15,000 $101,000 $45,000 $63,000 $54,000
29
Pilot in Israel
Development Sales in Israel
U.S Launch
OPEX Q1 Q2 Q3 Q4 Year 1 Year 2 Year 3 Year 4
Bureaucracy & Services Consulting & services 4,500 22,500 4,500 4,500 36,000 75,073 156,555 205,993
Bookkeeping & accounting 2,250 2,250 2,250 4,750 11,500 27,202 64,343 152,196
Office Expenses Office Rent 15,000 15,000 15,000 15,000 60,000 94,615 270,000 270,000
Utilities 3,000 3,000 3,000 3,000 12,000 18,923 81,000 81,000
Communication 2,400 2,400 2,400 2,400 9,600 15,138 29,879 58,971
IT Services 1,800 1,800 1,800 1,800 7,200 11,354 22,409 44,228
Miscellaneous 1,500 1,500 1,500 1,500 6,000 9,462 18,674 36,857
Servers - - - - 15,000 23,654 46,685 92,142
Other Expenses Financial expeses 3,000 3,000 3,000 3,000 12,000 18,923 37,348 73,714
Travels - - 36,000 71,053 140,235
Vehicle expenses -
48,000 192,000 384,000
Total $33,450 $51,450 $33,450 $35,950 $154,300 $378,344 $989,946 $1,539,336
30
Pilot in Israel
Development Sales in Israel
U.S Launch
Work Force Q1 Q2 Q3 Q4 Year 1 Year 2 Year 3 Year 4
Management CEO 30,000 30,000 30,000 30,000 120,000 216,000 388,800 699,840
Management CTO 27,000 27,000 27,000 27,000 108,000 172,800 276,480 442,368
Management VP sales - - 25,500 25,500 51,000 153,000 153,000 153,000
Management CMO 25,500 25,500 25,500 25,500 102,000 153,000 153,000 153,000
Management CFO - 18,000 18,000 18,000 54,000 108,000 108,000 108,000
R&D VP research & lab - - 25,500 25,500 51,000 102,000 102,000 102,000
R&D Developer 120,000 120,000 120,000 144,000 504,000 921,600 1,152,000 1,497,600
R&D QA - 13,500 13,500 27,000 54,000 194,400 259,200 351,000
R&D UX/UI designer 18,000 18,000 18,000 36,000 90,000 144,000 216,000 288,000
R&D DevOps - 39,000 39,000 39,000 117,000 234,000 234,000 234,000
Sales & Marketing Presale engineer - - 12,000 12,000 24,000 216,000 504,000 864,000
Sales & Marketing Sales person - - 18,000 18,000 36,000 540,000 972,000 1,620,000
General Product manager - - 22,500 22,500 45,000 270,000 270,000 270,000
General BizDev - - 18,000 18,000 36,000 216,000 216,000 216,000
General Operators - - 24,000 24,000 48,000 216,000 288,000 360,000
General Customer support - - - 7,500 7,500 60,000 90,000 120,000
General HR - - - - - 42,000 42,000 84,000
General Secretary - - - 7,500 7,500 60,000 120,000 120,000
Total Expenses $220,500 $291,000 $436,500 $507,000 $1,455,000 $4,018,800 $5,544,480 $7,682,808
31
Pilot in Israel
Development Sales in Israel
U.S Launch
Marketing Q1 Q2 Q3 Q4 Year 1 Year 2 Year 3 Year 4
Conferences/expos
10,000 10,000 20,000 80,000 208,000 540,800
PR Campaign
30,000 30,000 60,000 350,000 500,000 700,000
Online Advertisement (inc. LinkedIn)
20,000 20,000 40,000 400,000 1,040,000 2,912,000
Total $0 $0 $60,000 $60,000 $120,000 $830,000 $1,748,000 $4,152,800
Pilot in Israel
Development Sales in Israel
U.S Launch
Revenue Q1 Q2 Q3 Q4 Year 1 Year 2 Year 3 Year 4
Direct sales # of direct sales (for the year) - - - 3 3 10 20 55
Total direct sales
3 13 33 88
Direct sales revenue - - -
- 1,000,000 7,000,000 15,000,000
Indirect sales
# of indirect sales (for the year) - - -
- 5 10 28
Total indirect sales
- 5 15 43
Indirect sales revenue - - - - - 400,000 2,800,000 6,000,000
Total accumulated sales - - - - - 18 48 131
Total Revenue $0 $0 $0 $0 $0 $1,400,000 $9,800,000 $21,000,000
32
Pilot in Israel
Development Sales in Israel
U.S Launch
CF Q1 Q2 Q3 Q4 Year 1 Year 2 Year 3 Year 4
Revenue $0 $0 $0 $0 $0 $1,400,000 $9,800,000 $21,000,000
YoY growth -
- 700% 214%
Operating Expenses Sales & Marketing $0 $0 $90,000 $90,000 $180,000 $1,586,000 $3,224,000 $6,636,800
YoY growth - -
781% 103% 106%
% of revenue 113% 33% 32%
Research & Development $138,000 $190,500 $216,000 $271,500 $816,000 $1,596,000 $1,963,200 $2,472,600
YoY growth - -
96% 23% 26%
% of revenue 114% 20% 12%
General & Administrative $33,450 $51,450 $97,950 $115,450 $298,300 $1,242,344 $2,015,946 $2,709,336
YoY growth - -
316% 62% 34%
% of revenue 89% 21% 13%
CAPEX $47,000 $15,000 $24,000 $15,000 $101,000 $45,000 $63,000 $54,000
YoY growth - -
-55% 40% -14%
% of revenue 3% 1% 0%
Total Expenses $218,450 $256,950 $427,950 $491,950 $1,395,300 $4,469,344 $7,266,146 $11,872,736
YoY growth - -
220% 63% 63%
% of revenue 319% 74% 57%
Free Cash Flow (Before Tax) -$218,450 -$256,950 -$427,950 -$491,950 -$1,395,300 -$3,069,344 $2,533,854 $9,127,264
YoY growth - -
- -183% 260%
% of revenue -219% 26% 43%
33
$0 $1,400,000
$9,800,000
$21,000,000
-$1,395,300 -$3,069,344
$2,533,854
$9,127,264
Year 1 Year 2 Year 3 Year 4
Yearly Cash Flow
Income Free Cash Flow (Before Tax)
34
Budget - 12 Months
Before VAT
Capex $ 101,000 Opex $ 154,300 Personnel $ 1,455,000 Marketing $ 120,000 Unexpected $ 50,000
Total Expenses $ 1,880,300
5%
8%
77%
7%
3%
12 Month Budget
Capex
Opex
Personnel
Marketing
Unexpected
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